DIVERSIFICATION STRATEGY, ENTRY MODE, AND PERFORMANCE: EVIDENCE OF CHOICE AND CONSTRAINTS

✍ Scribed by EDITH C. BUSIJA; HUGH M. O’NEILL; CARL P. ZEITHAML

• Publisher: John Wiley and Sons
• Year: 1997
• Tongue: English
• Weight: 74 KB
• Volume: 18
• Category: Article
• ISSN: 0143-2095
• DOI: 10.1002/(sici)1097-0266(199704)18:4<321::aid-smj874>3.0.co;2-y

✦ Synopsis

Despite theoretical arguments matching type of diversification strategy with mode of entry, the exact form of relationships between strategy, mode of entry, and performance remains enigmatic. Our analysis, based on two samples, demonstrates that matches between strategy and mode did improve performance in one time period, but not a second. In addition, the results show that exclusive reliance on a single mode (internal development or acquisition) can restrict performance.